Platforms, innovation and capability development in the Chinese domestic market

John Humphrey, Ke Ding, Mai Fujita, Shiro Hioki, Koichiro Kimura

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

We compare the evolution of the mobile phone and electric two-wheeler sectors in China. In the first decade of the twenty-first century, Chinese firms have used technologies bundled into platforms to meet the needs of low-income Chinese consumers. The possibilities of downstream innovation opened up by platforms were not pursued. This paper shows how changes in Chinese consumer demand led to pressures for greater product differentiation and innovation, and how businesses responded to this through investing in research and development, developing their value chain linkages and mobilising local and national innovation resources. We highlight sectoral differences, particularly with respect to the speed of technological change in the mobile phone industry and its consequences for value chain linkages and inter-firm learning.

Original languageEnglish
Pages (from-to)408-423
Number of pages16
JournalEuropean Journal of Development Research
Volume30
Issue number3
DOIs
Publication statusPublished - 2018 Jul 1

Keywords

  • China
  • consumer demand
  • global value chains
  • innovation
  • platforms

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

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